In 2016, the average monthly gross wages and salaries were 1,146 euros

2 March 2017 – news release no 24

According to Statistics Estonia, in 2016, the average monthly gross wages and salaries were 1,146 euros; compared to 2015, the average monthly gross wages and salaries increased by 7.6%. The annual average monthly gross wages and salaries increased in all economic activities. The monthly gross wages and salaries were highest in the 4th quarter.

When in 2014 and 2015, the annual increase of the average monthly gross wages and salaries remained at around 6%, in 2016, the growth increased. Real wages, which take into account the influence of the change in the consumer price index, increased, compared to 2015, due to stable consumer prices by almost as much as the average monthly gross wages and salaries – 7.5%.

In 2016, compared to the previous year, irregular bonuses and premiums increased by 20.4% per employee. Irregular bonuses and premiums affected the year-over-year increase of average gross monthly wages and salaries by 0.4 percentage points.

In 2016, the average monthly gross wages and salaries continued to be highest in information and communication and financial and insurance activities. The year-over-year increase in average monthly gross wages and salaries was fastest in administrative and support service activities (16.4%) and real estate activities (14.3%). Above-average growth in wages and salaries was also recorded in agriculture, forestry and fishing (11.7%), information and communication (10.2%), accommodation and food service activities (9.5%), human health and social work activities (9.0%) and in education (7.7%).

The year-over-year growth of monthly gross wages and salaries was fastest in the Estonian private sector (8.9%) and slowest in state institutions (5.2%).

In 2016, by county, the average monthly gross wages and salaries continued to be highest in Harju (1,271 euros) and Tartu (1,149 euros) counties and lowest in Põlva (864 euros), Saare (880 euros) and Jõgeva (884 euros) counties. The year-over-year growth of monthly gross wages and salaries was fastest in Lääne and Tartu counties and slowest in Hiiu and Võru counties.

According to the Wages and Salaries Statistics Survey, the number of employees converted to full-time units decreased in 2016, compared to the previous year, by 1.2%. The biggest year-over-year decrease in the number of employees in full-time units, compared to 2015, occurred in other service activities, real estate activities and in mining and quarrying. The economic activities that saw an increase in the number of employees in 2016 include financial and insurance activities, human health and social work activities, professional, scientific and technical activities and information and communication activities.

In 2016, the average hourly gross wages and salaries were 6.90 euros; compared to 2015, the hourly gross wages and salaries increased by 6.0%.

In 2016, the average monthly labour costs per employee were 1,548 euros and the hourly labour costs were 10.28 euros. Compared to 2015, the average monthly labour costs per employee increased by 7.7%.

4th quarter of 2016

The average monthly gross wages and salaries were highest in the 4th quarter – 1,182 euros, having increased, compared to the 4th quarter of 2015, by 7.0%, remaining on the same level with the year-over-year growth of the previous quarter. The average monthly gross wages and salaries were 1,140 euros in October, 1,158 euros in November and 1,248 euros in December. In the 4th quarter of 2016, the average hourly gross wages and salaries were 7.08 euros, having increased by 6.1% compared to the 4th quarter of 2015.

In the 4th quarter of 2016, the average monthly gross wages and salaries were also highest in information and communication and in financial and insurance activities. Compared to the 4th quarter of 2015, the average monthly gross wages and salaries increased in all economic activities. In the 4th quarter, the largest increase in average monthly gross wages and salaries occurred in administrative and support service activities (15.5%), education (9.5%) and in real estate activities (9.3%). The annual increase in average monthly gross wages and salaries was slowest in professional, scientific and technical activities and in construction.

In the 4th quarter of 2016, compared to the 4th quarter of 2015, irregular bonuses and premiums increased by 17% per employee. Irregular bonuses and premiums affected the year-over-year increase in average gross monthly wages and salaries of the 4th quarter by 0.5 percentage points. Without irregular bonuses and premiums, the average monthly gross wages and salaries increased, compared to the 4th quarter of 2015, by 6.4%.

Statistics Estonia conducts the Wages and Salaries Statistics Survey on the basis of an international methodology since 1992. In 2016, the sample included 12,350 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full-time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for time actually worked and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.). In short-term statistics, the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s contributions and employer’s imputed social contributions to employees.

The statistics are based on the questionnaire “Wages and salaries”, the deadline of which was 18 October 2016. Statistics Estonia published the quarterly summary in 26 working days. For the statistical activity “Wages and salaries”, the main representatives of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.